McDaniel v. Citizens Bank
| Docket Number: | 2004-CA-01936-COA Linked Case(s): 2004-CT-01936-SCT2004-CA-01936-COA |
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| Oral Argument: | 12-13-2005 | |
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| Court of Appeals: |
Opinion Link Opinion Date: 02-14-2006 Opinion Author: MYERS, P.J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Contract - Accord and satisfaction Judge(s) Concurring: King, C.J., Lee, P.J., Southwick, Irving, Chandler, Griffis, Barnes, Ishee and Roberts, JJ. Procedural History: Directed Verdict Nature of the Case: CIVIL - CONTRACT |
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| Trial Court: |
Date of Trial Judgment: 09-03-2004 Appealed from: MARION COUNTY CIRCUIT COURT Judge: R. I. Prichard, III Disposition: DIRECTED VERDICT IN FAVOR OF PLAINTIFF Case Number: 2003-0324 |
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| Party Name: | Attorney Name: | |||
| Appellant: | Elizabeth S. McDaniel |
KRISTOPHER ALAN POWELL,
JACK W. LAND |
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| Appellee: | Citizens Bank | EUGENE LOVE FAIR, SUSAN K. STEADMAN |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Contract - Accord and satisfaction |
| Summary of the Facts: | Citizens Bank sued Elizabeth McDaniel for deficiency on a promissory note after Citizens Bank sold McDaniel’s Cadillac used as collateral. The court entered a directed verdict in favor of Citizens Bank. McDaniel appeals. |
| Summary of Opinion Analysis: | McDaniel executed a promissory note with Citizens for $11,444.40, secured by her car. McDaniel was to repay the loan in eleven installments of $250 with a final balloon payment of $10,150.95. McDaniel later signed a new promissory note for the balance of the previous note ($10,150.95) and was given a coupon book for payments to be made to the bank. During the loan negotiations she was informed that she would need to purchase insurance on the car prior to the loan being completed. After she failed to obtain insurance, she was told that the car would be repossessed for failure to obtain insurance because the FDIC required this insurance. McDaniel again failed to purchase the required insurance and the Cadillac was repossessed. McDaniel argues that the later note was accord and satisfaction of the earlier note. The four elements of a valid accord and satisfaction are: something of value offered in full satisfaction of a demand; accompanied by acts and declarations as amount to a condition that if the thing offered is accepted, it is accepted in satisfaction; the party offered the thing of value is bound to understand that if he takes it, he takes subject to such conditions; and the party actually does accept the item. Citizens offered the later loan with the condition that McDaniel would provide proof of insurance prior to the activation and recording in the bank’s records by Citizens. McDaniel did not meet her obligation of providing proof of insurance on the car and the bank canceled the new loan before it was activated. This cancellation left the final payment of the earlier note unpaid and therefore put McDaniel in default of that loan. Without this loan McDaniel has not provided Citizens with something of value offered in full satisfaction of demand. |
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